Case Study Question 02
Economics- Understanding Economic Development
Chapter 3: Money and Credit
Class 10
Read the following passage carefully and answer the following questions:
Self-help groups exist in the rural parts of India. It organizes the rural poor especially women into small groups and collects their savings. It has 15 to 20 members usually belonging to the same neighbourhood who meet and save regularly. The saving may vary from rupees 25 to rupees hundred or even more depending upon the ability of the people to save. The members can take small loans from the group itself to meet the requirements. The group charges rate of interest on these loans but it is less than the interest charged by the moneylender. After a year or two if the group is regular in savings it becomes eligible for availing loan from the bank. The loan is sanctioned in the name of the group and is meant to create self-employment opportunities for the members. For example, the loan is given to the members for releasing mortgaged land, to meet the working capital requirements, to purchase assets and housing material. The members take the decision regarding the Savings and loan activities of the group. It also decides on the nature of the loan to be granted including the purpose, amount, rate of interest and the repayment schedule. In the case of non payment of the loan by any one member is followed up seriously by the other members in the group. Due to this reason, banks are willing to lend to poor women when organized in a self-help group even though they have no Collateral as such. solves the problem of a lack of collateral. It provides timely loans for various purposes and at a reasonable interest rate, helps women to become financially self-reliant, provides a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc. SHGs help borrowers overcome the problem of lack of collateral. They can get timely loans for a variety of purposes and at a reasonable interest rate. Moreover, SHGs are the building blocks of organisation of the rural poor. Not only does it help women to become financially self-reliant, the regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc. Andhra Pradesh accounts for maximum percentage of SHGs in bank credit.
Question.1.
In SHG most of the decisions regarding savings and loan activities are taken by:
(a) Bank
(b) Members
(c) Non-government organisations
(d) LIC
(b) Members
Question.2.
What are SHGs?
(a) They are self help groups formed by the poor rural women.
(b) formed by government
(c) Non-government organisations
(d) formed by private institutions.
(a) They are self help groups formed by the poor rural women.
Question.3.
Who helps the borrowers to overcome the problem of lack of collateral?
(a) Self-help group (SHG)
(b) State government
(c) Employers
(d) Moneylenders
(a) Self-help group (SHG)
Question.4.
Which state accounts for maximum percentage of SHGs (self-help groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka
(a) Andhra Pradesh
Question.5.
A typical Self Help Group usually has
(a) 100-200 members
(b) 50-100 members
(c) less than 10 members
(d) 15-20 members
(d) 15-20 members
-
NCERT Folder 10th History Chapter 4 : The Age of Industrialisation
-
NCERT Folder 10th History Chapter 3 : The Making of a Global World
-
Extra Questions 10th History Chapter 3 : The Making of Global World
-
Extra Questions 10th History Chapter 2 : Nationalism in India
-
NCERT Folder 10th History Chapter 2 : Nationalism in India
-
Extra Questions 10th History Chapter 1 : The Rise of Nationalism in Europe
-
NCERT Folder 10th History Chapter 1 : The Rise of Nationalism in Europe
-
Extra Questions 9th Economics Chapter 4 : Food Security In India
-
NCERT Folder 9th Economics Chapter 4 : Food Security In India
-
Extra Questions 9th Economics Chapter 3 : Poverty as a Challenge